Contradictions of bimethalism: the problem of parity

Abstract

The article deals with the problem of parity of currency metals, which developed in the XIX century. The contradictions of the bimetallic monetary system and the formation of a monometallic monetary system in the form of a gold coin standard are defined. The author analyzes the views of economists of ХІХ century on the metal monetary standard, subjective and objective conditions for disagreements of their views. The changes in the value parity of gold and silver during the entire XIX century, which led to an increase in the contradictions in the implementation of world monetary circulation are described. The increase in international commodity exchange required the huge growth of precious coin metals for coinage, which became inexpedient. The situation remained unchanged even after the transition of all countries to the gold coin standard at the end of the XIX century, and the preservation of silver for the coinage of a small coin with a commensurate value for the content of silver. Since the 1870s, there were many supporters of a homogeneous monetary system for all countries in Europe. Such an association should have manifested itself in the coinage of equivalent coins by all states. This issue was discussed at international conferences in Paris in 1878 and 1881, as well as in Brussels in late 1892. The participants of the conference rejected the idea of introducing a double currency system. The artificial contradictions and difficulties were also added by the world banking system, which was interested in the development of paper credit money. These contradictions of the system of metallic money led to the collapse and abolition of the gold coin standard in July 1914. At that time, new ideas and financial conditions for the transition of currency relations to a new gold standard and in a consequence to the gold exchange standard were developing in the world.